2019中国在线教育行业报告.pdfVIP

Equities ● Hong Kong / China August 2019 THIS CONTENT MAY NOT BE DISTRIBUTED TO THE PEOPLES REPUBLIC OF CHINA (THE PRC) (EXCLUDING SPECIAL ADMINISTRATIVE REGIONS OF HONG KONG AND MACAO) Why read this report?  After-school tutoring in China is being driven by rising pressure on children to succeed academically; we see TAL and EDU as the most defensive China growth stocks amid trade tensions  Online education offers students in smaller cities greater opportunities, and for education providers, scalability; online investment will translate into more sustainable long-term growth  We initiate on the two market leaders, TAL and EDU, with Buy ratings; we prefer TAL due to the faster ramp-up of online business and earnings recovery ahead Top marks Investors in search of a strong domestic growth story in China with no exposure to fractious international trade relations should look no further than the country’s thriving after-school tutoring market. Education is a powerful cultural force, as illustrated by the strong desire of many parents for their son or da